IDACORP(US:IDA)2022-11-06 16:38Financial Data and Key Metrics Changes - IDACORP's Q3 2022 earnings per diluted share were $2.10, an increase of $0.17 from the previous year, driven by customer growth, weather, and a midyear regulatory order, partially offset by higher costs [5][6] - Year-to-date earnings per diluted share reached $4.28, up $0.08 from the first nine months of the previous year [5] - The company raised its full-year 2022 earnings guidance by $0.10 to a range of $5.05 to $5.15 per diluted share, marking the 15th consecutive year of earnings per share growth [6][42] Business Line Data and Key Metrics Changes - Customer growth for Idaho Power was 2.5% year-over-year for the 12 months ending September 30, contributing positively to operating income [8][22] - Higher weather-related usage resulted in a 7% increase in usage per residential customer, a 5% increase for commercial customers, and a 10% increase for irrigation customers compared to Q3 of the previous year [25][26] - Operating income was negatively impacted by higher operating and maintenance expenses and net power supply expenses not deferred for future recovery [22][30] Market Data and Key Metrics Changes - The economy in the Idaho Power service area is projected to grow, with GDP growth estimates of 1.9% for 2022 and 3.4% for 2023, while unemployment stands at 3%, below the national average [10] - The company anticipates significant commercial and industrial growth, with a projected annual peak demand growth rate increasing from 2.1% to 4.8% in the upcoming Integrated Resource Plan (IRP) [24][42] Company Strategy and Development Direction - IDACORP is focusing on significant infrastructure investments, including battery storage and solar facilities, to meet anticipated load growth [13][15] - The company plans to file a general rate case in Idaho within the next 12 months to recover costs associated with infrastructure investments [16][17] - A dividend increase of 5.3% was announced, marking 12 consecutive years of dividend growth, reflecting strong financial performance [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about customer growth despite signs of recession-like conditions in the housing market, noting that a housing price reset could improve affordability [23][24] - The company is committed to managing costs effectively in the face of inflationary pressures and anticipates a moderation in O&M cost increases for 2023 [51][43] - Future capital expenditures are expected to increase due to inflation and the need to address capacity deficits [38][39] Other Important Information - The company reported a 55% increase in capital expenditures on a cash basis compared to the first nine months of the previous year, primarily for large battery storage projects [35] - IDACORP maintains a strong balance sheet and liquidity, with solid investment-grade credit ratings [39][40] Q&A Session Summary Question: Insights on O&M guidance expectation for 2023 - Management indicated that they do not expect the same level of increase in O&M costs for 2023 as seen in 2022, focusing on cost management and efficiency [50][51] Question: Clarification on the 5-year capital plan and incremental capital needs - Management clarified that the $400 million figure for resource deficits was based on the 2021 IRP, and new growth assumptions will lead to an updated CapEx forecast in February [52][55]